Fannie Mae, Freddie Mac, the Federal Housing Administration, and the Department of Veterans Affairs have announced guidance regarding changes to their normal origination guidelines during the COVID-19 emergency. This guidance includes temporarily-relaxed standards with respect to appraisals and employment/income verification requirements to accommodate social distancing guidelines and the fact that many employers are temporarily closed or employees are working from home. Fannie Mae and Freddie Mac also tighten certain underwriting requirements to ensure borrowers have continuity of income for new originations.
If you wish to receive periodic updates on this or other topics related to the pandemic, you can be added to our COVID-19 “Special Interest” mailing list by subscribing here. For any other legal questions related to this pandemic, please contact the Firm’s COVID-19 Core Response Team at FW-SIG-COVID-19-Core-Response-Team@mayerbrown.com.